BK Group nets Rwf36 billion after tax profit in first half of 2023

On 1 September 2023 at 06:02

BK Group has once again demonstrated its resilience and growth as it proudly announces a net income of Rwf 39.6 billion in the first half of 2023. Comprising a dynamic quartet of subsidiaries – Bank of Kigali, BK General Insurance, BK TecHouse, and BK Capital – the BK Group’s holistic approach to financial services has yielded impressive results across the board.

The driving force behind BK Group’s success has traditionally been the performance of its flagship entity, the Bank of Kigali. With a profit after tax of Rwf36 billion, the bank continues to solidify its position as the group’s primary revenue engine. During a press conference on Thursday, August 31, Bank of Kigali CEO, Diane Karusisi, highlighted two pivotal factors contributing to the bank’s outstanding performance.

The first factor was a marked increase in fee income, attributed to BK’s adept management of foreign exchange trading and fees collected from its payment facilities. This diversification strategy has proven effective in generating substantial revenue streams. The second factor is the bank’s meticulous approach to maintaining a healthy loan portfolio. Notably, the bank boasts a staggeringly low Non-Performing Loan (NPL) rate of 2.6% and a cost of risk of just two per cent. These figures reflect the bank’s disciplined underwriting practices, positioning it as a paragon of financial prudence.

As of June 30, the Bank of Kigali catered to an extensive customer base, serving over 375,038 retail customers, more than 2,183 corporate clients, 59,260 SME customers, and over 44,268 agri-customers. Impressively, the bank facilitated over 3.5 million transactions amounting to Rwf 836.2 billion during the same period. With a widespread presence, the bank boasted 67 branches, 105 ATMs, and 2,984 POS terminals across the country.

BK Group’s achievements do not end with its banking arm. BK Insurance achieved a profit of Rwf 1.7 billion in H1 2023, reflecting a consistent growth trajectory. Furthermore, BK TecHouse’s remarkable 29% increase in sales revenue, soaring from Rwf 574.4 million to Rwf 738.3 million year-on-year, underscores the company’s ability to adapt and excel in a competitive market.

Similarly, BK Capital showcased an exceptional performance, with net operating income skyrocketing by 96% to Rwf 752 million in Q2 2023, compared to the same period last year. The growth demonstrated by these subsidiaries signifies the group’s holistic approach to financial services and its capacity to capitalize on diverse revenue streams.

Beata Habyarimana, the group’s CEO, emphasized the steadfast commitment of the BK Group amidst a challenging economic landscape. She applauded the resilience, adaptability, and dedication exhibited by the group, expressing a commitment to continued vigilance and agility in navigating the uncertain economic environment.